Question - On June 30, 2015, Wisconsin, Inc., issued $194,700 in debt and 20,800 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2015, were as follows:
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Wisconsin
|
Badger
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|
Revenues
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$(993,000)
|
$(410,000)
|
|
Expenses
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737,000
|
295,000
|
|
Net income
|
$(256,000)
|
$(115,000)
|
|
Retained earnings, 1/1
|
$(838,000)
|
$(245,000)
|
|
Net income
|
(256,000)
|
(115,000)
|
|
Dividends declared
|
95,250
|
0
|
|
Retained earnings, 6/30
|
$(998,750)
|
$(360,000)
|
|
Cash
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$76,750
|
$87,000
|
|
Receivables and inventory
|
430,000
|
173,000
|
|
Patented technology (net)
|
954,000
|
388,000
|
|
Equipment (net)
|
726,000
|
634,000
|
|
Total assets
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$2,186,750
|
$1,282,000
|
|
Liabilities
|
$(558,000)
|
$(452,000)
|
|
Common stock
|
(360,000)
|
(200,000)
|
|
Additional paid-in capital
|
(270,000)
|
(270,000)
|
|
Retained earnings
|
(998,750)
|
(360,000)
|
|
Total liabilities and equities
|
$(2,186,750)
|
$(1,282,000)
|
Note: Parentheses indicate a credit balance.
Wisconsin also paid $38,200 to a broker for arranging the transaction. In addition, Wisconsin paid $46,100 in stock issuance costs. Badger's equipment was actually worth $785,500, but its patented technology was valued at only $364,000.
What are the consolidated balances for the following accounts? (Input all amounts as positive values.)
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Accounts
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Amounts
|
|
a.
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Net income.
|
$217,800
|
|
b.
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Retained earnings, 1/1/15.
|
$838,000
|
|
c.
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Patented technology.
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$1,390,700
|
|
d.
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Goodwill.
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$67,200
|
|
e.
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Liabilities.
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$1,204,700
|
|
f.
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Common stock.
|
$568,000
|
|
g.
|
Additional paid-in capital.
|
$847,900
|